Practice-midterm-2abstract - EC 323 Practice Questions on...

EC 323 Practice Questions on Abstract Choice (for Midterm 2) November 3, 2009 model? If so, then state why. If not then state why and provide a direct test of transitivity. L 1 = ( a 1 ; ::; a n ) and L 2 = ( b 1 ; ::; b m ) , de±ne the concatenation of L 1 and L 2 by L 1 L 2 = ( a 1 ; ::; a n ; b 1 ; ::; b m ) : That is, a concatenation is a list formed by joining two lists. One can also concatenate more than two lists. Now consider an agent who is a preference maximizer (with complete transitive preferences) and who has to choose from lists. Derive a testable implication of preference maximization involving con-catenations. Does your testable implication hold even if the preference is not transitive? status quo model?

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